Report: Bitcoin consumes less energy compared to banking and gold industry

by Gordon James

Bitcoin mining consumes less energy than the gold industry and banking, according to a new report by Greenpeace. The green group studied how much it would cost to mine various commodities, finding that Bitcoin is far more efficient in terms of power consumed per unit value produced.

The “bitcoin energy consumption debunked” is a report that claims that Bitcoin consumes less energy compared to the banking and gold industry. The article also mentions how the mining process uses electricity in a more efficient way than other industries.

Many detractors of Bitcoin have long used the asset’s energy consumption as a stick to beat them with, claiming that the amount of energy needed in mining new units of the currency has a harmful effect on the environment. 

This has influenced the decision-making processes of enterprises and governments with a negative attitude toward space.

Bitcoin consumes less energy than the banking and gold industries.

Galaxy Digital has issued a research claiming that Bitcoin’s supposed “high” energy use is relatively low when compared to other sectors like as banking and gold, in an effort to debunk many of the complaints of Bitcoin’s high energy use.

The yearly energy demand of Bitcoin, according to the analysis, is roughly 113.89 terawatt-hours (TWh). At the same time, its conventional finance equivalent (the banking business) uses more than twice the asset’s yearly consumption (263.72 TWh).

Apart from making a comparison between Bitcoin and the banking business, the paper also included the yellow metal industry, which is often likened to Bitcoin. According to the conclusions of the analysis, the gold sector consumes 240.61 TWh per year, which is much more than Bitcoin.

According to the research, “Bitcoin is a fundamentally new technology that is not a precise alternative for any one legacy system,” and “Bitcoin is a fundamentally innovative technology that is not an exact substitute for any one old system.”

“Bitcoin is not just a settlement layer, nor is it just a store of wealth or a means of trade.” There’s no disputing that the Bitcoin network uses a lot of energy, but that’s what makes it so stable and safe.”

Oil companies may mine BTC using waste methane.

Bitcoin mining, according to Galaxy Digital, is also the greatest energy sink option, citing oil fields as an example, where mining the asset may directly cut methane emissions. 

This implies that firms like Great American Mining, Upstream Data, and Crusoe Energy Systems may construct infrastructures to absorb waste methane and utilize it to mine Bitcoin. According to the paper, mining BTC using the lost gas might result in a “24x decrease in emissions” for oil companies.

Aside from that, the article added that mining allows miners to turn on and off their equipment whenever they want.

The research also discussed the importance of energy to Bitcoin, stating that its use may significantly decrease environmental pollution. It went on to say that over 20 times the amount of energy used by Bitcoin is squandered yearly throughout the world.

Posted in: Analysis, Bitcoin

Report: Bitcoin consumes less energy compared to banking and gold industry

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The “how much electricity does crypto mining use” is a report that states Bitcoin consumes less energy compared to banking and gold industry.

Frequently Asked Questions

Is Bitcoin more environmentally friendly than gold?

A: This is a very complicated question and would take more than one answer to fully explain the result. I will try my best, but please dont be offended if its not entirely accurate!

How much energy does the gold industry consume?

A: The gold industry consumes the most energy out of any other mined metal.

How much energy does Bitcoin consume?

A: Bitcoin uses a lot of electricity to mine.

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